"We accomplished much in 2018, delivering strong free cash flow and
meeting our deleverage commitments, restoring underlying EBITDA growth
in the quarter and second half, premiumizing our portfolio across
regions including launching Truss our Canadian cannabis beverage JV,
scaling volume and profitability in our fast growing International
business and continuing to strengthen our European business. Through the
year we further scaled our cost saving program which insulated us in
part from the effects of weaker industry demand in North America, higher
than anticipated input inflationary pressures and challenges associated
with the implementation of our U.S. brewery supply chain system."

Mark continued, "We enter 2019 with a U.S. commercial plan focused on
mix and share improvement that is fully resourced and showing early
signs of impact against Coors Light, a commercial strategy that is
working in Europe and International and continually improving commercial
trends in Canada. We are focused on further strong free cash flow
delivery and deleverage supported by more than $200 million of cost
savings in 2019 and further $450 million across 2020 - 2022. We remain
committed to our plan to reinstitute a dividend payout-ratio in the
range of 20-25% of annual trailing underlying EBITDA upon achieving
3.75x leverage, which we expect to occur around the middle of 2019."

Consolidated Performance - Full Year 2018

Twelve Months Ended

($ in millions, except per share data) (Unaudited)

December 31,

2018

December 31,

2017

As Restated

Reported

% Increase

(Decrease)

Foreign

Exchange

Impact

($)

Constant

Currency

% Increase

(Decrease)(2)

Net Sales

$

10,769.6

$

11,002.8

(2.1

)%

$

58.4

(2.7

)%

U.S. GAAP Net income (loss)(1)

$

1,116.5

$

1,565.6

(28.7

)%

Per diluted share

$

5.15

$

7.23

(28.8

)%

Underlying (Non-GAAP) Net income (loss)(2)

$

1,091.2

$

970.1

12.5

%

Per diluted share

$

5.04

$

4.48

12.5

%

Underlying EBITDA (Non-GAAP)(2)

$

2,453.7

$

2,496.6

(1.7

)%

$

(4.3

)

(1.5

)%

Consolidated Performance - Fourth Quarter 2018

Three Months Ended

($ in millions, except per share data) (Unaudited)

December 31,

2018

December 31,

2017

As Restated

Reported

% Increase

(Decrease)

Foreign

Exchange

Impact

($)

Constant

Currency

% Increase

(Decrease)(2)

Net Sales

$

2,418.7

$

2,579.6

(6.2

)%

$

(30.8

)

(5.0

)%

U.S. GAAP Net income (loss)(1)

$

76.0

$

716.9

(89.4

)%

Per diluted share

$

0.35

$

3.31

(89.4

)%

Underlying (Non-GAAP) Net income (loss)(2)

$

182.3

$

134.3

35.7

%

Per diluted share

$

0.84

$

0.62

35.5

%

Underlying EBITDA (Non-GAAP)(2)

$

487.7

$

481.0

1.4

%

$

(12.0

)

3.9

%

(1)

Net income (loss) attributable to MCBC.

(2)

See Appendix for definitions and reconciliations of non-GAAP
financial measures.

U.S. GAAP net incomeattributable to MCBC: decreased
28.7 percent, primarily driven by the one-time income tax benefit
recognized in the prior year due to the reduction to the U.S. federal
corporate income tax rate as a result of U.S. tax reform. This decline
was also driven by unrealized mark-to-market changes on commodity
positions and lower volume and cost inflation in the U.S. and Canada,
partially offset by the $328 million cash payment received in January
2018 related to a purchase price adjustment to our acquisition of the
Miller International business, positive global net pricing, global
marketing optimization, general and administrative spend reductions
and cost savings, as well as lower interest expense.

Underlying EBITDA: decreased 1.7 percent on a reported basis
and decreased 1.5 percent on a constant currency basis, largely driven
by the same factors as underlying net income, with the exception of
lower interest and income tax expense.

U.S. GAAP cash from operations: net cash provided by operating
activities for full year 2018was approximately $2.3 billion,
which represents an improvement of $465 million from the prior year,
primarily driven by the $328 million cash payment received in January
2018 related to the receipt of a purchase price adjustment for our
acquisition of the Miller International business, as well as lower
pension contributions and lower interest paid, partially offset by
unfavorable changes in working capital and lower cash tax receipts.

Underlying free cash flow: $1.4 billion for full year 2018,
which represents a decrease of $27.1 million from the prior year,
driven by unfavorable changes in working capital, lower full year
underlying EBITDA, lower cash tax receipts and higher cash paid for
capital expenditures, partially offset by lower cash paid for pension
contributions and interest.

Debt: Total debt at the end of 2018 was $10.488 billion, and
cash and cash equivalents totaled $1.058 billion, resulting in net
debt of $9.430 billion. This net debt is more than $1.4 billion lower
than at the beginning of the year, driven by the repayment of our CAD
400 million 2.25% notes with cash on hand as part of our deleverage
commitment and repayment of outstanding commercial paper as well as
higher cash and cash equivalents.

Volume: Worldwide brand volume of 22.0 million hectoliters
decreased 1.5 percent, due to lower volume in the U.S. and Canada,
partially offset by growth in Europe and International. Financial
volume of 21.6 million hectoliters decreased 6.5 percent, driven by
lower volume in the U.S., in part due to quarterly timing of
wholesaler inventories, as well as lower volume in Canada and
International, partially offset by growth in Europe. Global priority
brand volume decreased 1.7 percent.

U.S. GAAP net incomeattributable to MCBC: totaled$76.0
million for the fourth quarter compared to $716.9 million in the prior
year, primarily driven by the one-time income tax benefit recognized
in the prior year due to the reduction to the U.S. federal corporate
income tax rate as a result of U.S. tax reform. This decline was also
driven by unrealized mark-to-market changes on commodity positions and
lower volume and cost inflation in the U.S. and Canada, partially
offset by positive global net pricing, volume growth and base business
performance in Europe and International, global marketing
optimization, general and administrative spend reductions and cost
savings, as well as lower interest expense.

Underlying EBITDA: increased 1.4 percent on a reported basis
and increased 3.9 percent on a constant currency basis, largely driven
by the same factors as underlying net income, with the exception of
lower interest and income tax expense.

(1) Brand Volume Basis NSR/HL:
Effective in the first quarter of 2018, we revised our net sales revenue
(NSR) per HL performance discussions to be on a brand volume basis, with
all per-hectoliter calculations including owned and actively managed
brands, along with royalty volume, in the denominator, as well as the
financial impact of these sales in the numerator, unless otherwise
indicated. See appendix for definitions.

Business Review - Fourth Quarter 2018

Net Sales

($ in millions) (Unaudited)

Three Months Ended

December 31,

2018

December 31,

2017

Reported

% Increase

(Decrease)

Foreign

Exchange

Impact

($)

Constant

Currency

% Increase

(Decrease)(1)

United States

$

1,603.8

$

1,724.7

(7.0

)%

$

—

(7.0

)%

Canada

322.0

352.9

(8.8

)%

(13.1

)

(5.0

)%

Europe

464.3

473.2

(1.9

)%

(16.4

)

1.6

%

International

57.7

71.4

(19.2

)%

(1.5

)

(17.1

)%

Corporate

0.1

—

N/M

—

N/M

Eliminations(2)

(29.2

)

(42.6

)

31.5

%

0.2

31.0

%

Consolidated

$

2,418.7

$

2,579.6

(6.2

)%

$

(30.8

)

(5.0

)%

N/M = Not meaningful

(1)

See Appendix for definitions and reconciliations of non-GAAP
financial measures.

(2)

Reflects intercompany sales that are eliminated in consolidated
totals.

Pretax Income (U.S. GAAP)

($ in millions) (Unaudited)

Three Months Ended

December 31,

2018

December 31,

2017

Reported

% Increase

(Decrease)

Foreign

Exchange

Impact

($)

Constant

Currency

% Increase

(Decrease)(1)

United States

$

239.3

$

224.0

6.8

%

$

(0.5

)

7.1

%

Canada

9.1

42.4

(78.5

)%

(2.5

)

(72.6

)%

Europe

33.5

43.1

(22.3

)%

(1.4

)

(19.0

)%

International

(6.7

)

(7.5

)

10.7

%

(0.6

)

18.7

%

Corporate

(205.9

)

(100.4

)

(105.1

)%

(2.0

)

(103.1

)%

Consolidated

$

69.3

$

201.6

(65.6

)%

$

(7.0

)

(62.2

)%

(1)

See Appendix for definitions and reconciliations of non-GAAP
financial measures.

Underlying EBITDA (Non-GAAP)(1)

($ in millions) (Unaudited)

Three Months Ended

December 31,

2018

December 31,

2017

Reported

% Increase

(Decrease)

Foreign

Exchange

Impact

($)

Constant

Currency

% Increase

(Decrease)(1)

United States

$

370.1

$

347.9

6.4

%

$

(0.5

)

6.5

%

Canada

64.7

79.2

(18.3

)%

(5.0

)

(12.0

)%

Europe

80.7

90.9

(11.2

)%

(3.1

)

(7.8

)%

International

2.8

0.4

N/M

(0.7

)

N/M

Corporate

(30.6

)

(37.4

)

18.2

%

(2.7

)

25.4

%

Consolidated

$

487.7

$

481.0

1.4

%

$

(12.0

)

3.9

%

N/M = Not meaningful

(1)

See Appendix for definitions and reconciliations of non-GAAP
financial measures.

Quarterly Segment Highlights (versus Fourth Quarter 2017
Results)

United States Business

Volume: U.S. brand volume decreased 5.1 percent on a
trading-day-adjusted basis for the quarter, driven by lower volume in
the premium light and economy segments. Sales-to-wholesalers (STWs),
excluding contract brewing, volume declined 8.9 percent driven by
lower brand volume as well as quarterly timing of wholesaler
inventories. Wholesaler inventories ended 2018 at normal levels due to
lower inventories outside of the radius of our Milwaukee brewery,
offset by higher inventory levels in the Milwaukee brewery area in
preparation for our February system implementation. On a full year
basis, brand volume and STWs largely converged as brand volume
declined 3.9 percent and STWs declined 4.4 percent.

Marketing, general and administrative (MG&A) expense
decreased 16.8 percent due to spending optimization and efficiencies,
as well as lower employee-related expenses including incremental cost
reductions related to the restructuring initiated in the third quarter
and lower employee incentive expense.

On a U.S. GAAP basis, U.S. pretax income increased6.8
percent to $239.3 million, driven by lower MG&A expenses, higher net
pricing and the favorable impact of the new revenue recognition
accounting standard, partially offset by lower volumes, cost inflation
and negative sales mix.

U.S. underlying EBITDA increased 6.4 percent to $370.1 million,
driven by the same factors as U.S. GAAP results.

Canada Business

Volume: Canada brand volume decreased 2.0 percent in the fourth
quarter, primarily as a result of lower volumes particularly in the
West and Ontario, partially offset by growth in Quebec. Financial
volume decreased 5.7 percent due to contract manufacturing and brand
volume declines as well as distributor inventory reductions.

Revenue: Net sales per hectoliter (brand volume basis)
decreased 0.7 percent in local currency, driven by our adoption of the
new revenue recognition accounting standard, which reduced net sales
by approximately $11 million in the quarter with a similar benefit to
MG&A. Excluding the effect of the new accounting standard, NSR per HL
(brand volume basis) increased 2.7 percent in local currency due to
higher net pricing.

MG&A expense decreased 11.8 percent in local currency,
primarily driven by the approximate $12 million favorable impact of
the new revenue recognition accounting standard. Excluding the impact
of the new revenue recognition accounting standard, marketing, general
and administrative expenses were largely flat.

On a U.S. GAAP basis, Canada reported pretax income of
$9.1 million, a 78.5 percent decrease from the prior year, driven by
higher other expense related to the unrealized mark-to-market loss
recognized on the HEXO warrants issued in connection with the
formation of the Truss joint venture, lower volumes and one-time
costs, partially offset by higher net pricing.

Canada underlying EBITDA decreased 12.0 percent in constant
currency to $64.7 million in the quarter, due to the same factors as
U.S. GAAP results with the exception of the unrealized mark-to-market
losses on the HEXO warrants.

Revenue: Europe net sales per hectoliter (brand volume basis)
decreased 2.5 percent in local currency, driven by negative pricing
due to the impact of adopting recently revised excise-tax guidelines
in one of our European markets as well as increasing our investment
behind our First Choice Agenda this year.

COGS per hectoliter increased 0.4 percent in local currency,
due to higher fixed overhead costs, inflation and mix shift to
higher-cost brands and geographies.

MG&A expense increased 4.0 percent in local currency,
primarily driven by the impact of cycling the partial reversal of a
bad debt provision in 2017 partially offset by more efficient brand
investments and the impact of adopting the new revenue recognition
accounting standard.

On a U.S. GAAP basis, Europe reported pretax income of
$33.5 million, a decrease of 22.3 percent driven by cycling the
partial reversal of a bad debt provision in 2017, negative pricing due
to the impact of adopting recently revised excise-tax guidelines in
one of our European markets as well as increasing our investment
behind our First Choice Agenda this year.

Europeunderlying EBITDA decreased 7.8 percent in
constant currency to $80.7 million, driven by the same factors as U.S.
GAAP results.

International Business

Volume: International brand volume increased by 1.1 percent in
the fourth quarter, driven by organic growth in our focus markets.

On a U.S. GAAP basis, International segment reported a pretax
loss of $6.7 million, an improvement of $0.8 million versus a year
ago, driven by shifting to a more profitable business model in Mexico,
volume growth in our focus markets, and lower marketing and
integration expenses, partially offset by special charges recognized
as a result of formally exiting our China business and negative
foreign currency movements.

International underlying EBITDA was $2.8 million in the fourth
quarter, compared to $0.4 million a year ago, driven by the same
factors as U.S. GAAP results with the exception of special charges
related to the impacts of exiting our China business, as well as
integration costs.

Corporate

On a U.S. GAAP basis, Corporate pretax loss on a reported basis
was $205.9 million in the fourth quarter compared to a loss of $100.4
million in the prior year, primarily due to unrealized mark-to-market
losses on commodity positions compared to gains a year ago, partially
offset by lower general and administrative costs, lower interest
expense and lower integration costs.

Corporate underlying EBITDA was a loss of $30.6 million for the
fourth quarter versus a $37.4 million loss in the prior year, driven
primarily by lower general and administrative costs.

The company delivered $240 million of cost savings, resulting
in a total of $495 million delivered to date within the current
program. Cost savings for 2019 are expected to be approximately $205
million to generate a total of $700 million over the 3 year period of
the 2017 - 2019 program, which exceeds our original goal of $550
million by $150 million.

Total one-time costs to capture transaction-related synergies were
approximately $94 million in 2018, and are now expected to be $230
million over the 2017 - 2019 program, with approximately 70% non-core
operating expense and 30% in capital spending. This reflects a $120
million reduction in costs to achieve synergies versus our original
expectation.

We are committed to continuing to deliver cost savings across the
organization and are constantly evaluating the business to identify
areas for additional savings. Our next generation cost savings program
to begin in 2020, is currently expected to deliver approximately
$450 million over the 3 year program term and is focused around
many of the same functions of the business as the current program. As
all of the Acquisition transaction related synergies are expected to
be realized by the end of the 2017 - 2019 program, the 2020 - 2022
program reflects ongoing base business savings. With all programs,
there are certain one-time investments required to realize these
on-going savings. As we will have finalized our integration period
related to the Acquisition, all operating expenses and capital
spending associated with the 2020 - 2022 program will be reflected
within our underlying results.

Effective Income Tax Rates

Three Months Ended

Twelve Months Ended

December 31, 2018

December 31, 2017

December 31, 2018

December 31, 2017

U.S. GAAP effective tax rate - As Restated

(9.2

)%

(257.8

)%

16.6

%

(14.8

)%

Underlying effective tax rate

13.7

%

28.7

%

16.5

%

27.1

%

Our effective tax rate was negative 9.2 percent in the fourth
quarter of 2018 and was driven by a one-time tax benefit recognized
during the quarter. A year ago, our fourth quarter effective tax rate
was negative 257.8 percent driven by the recognition of a net discrete
tax benefit related to revaluing our deferred tax liabilities as a
result of the reduction of the federal statutory corporate income tax
rate to 21 percent as part of U.S. tax reform. The increase in our
effective tax rate during the full year 2018 was also primarily driven
by the previously mentioned impacts of U.S. tax reform, which resulted
in a negative full year effective tax rate of 14.8 percent in 2017.

Our fourth quarter underlying effective tax rate decreased to
13.7 percent from 28.7 percent a year ago, primarily due to the change
in the U.S. statutory rate from 35 percent to 21 percent starting in
2018, as well as the above mentioned one time tax benefit recognized
in the fourth quarter of 2018. The decrease in our full year
underlying tax rate versus the prior year was also primarily driven by
the previously mentioned reduction in the U.S. federal statutory rate
in 2018.

Special and Other Non-Core Items

The following special and other non-core items have been excluded
from underlying results. See the Appendix for reconciliations of
non-GAAP financial measures.

During the fourth quarter, MCBC recognized a net special charge of
$18.0 million, largely driven by asset abandonment charges, primarily
accelerated depreciation related to brewery closures and charges
related to the exit of our China business.

Additionally during the fourth quarter, we recorded other non-core
net charges of $123.7 million, primarily driven by unrealized
mark-to-market losses on commodity hedges and warrants and
integration-related expenses.

As previously disclosed in our Current Report on Form 8-K filed on
February 12, 2019, we will be restating our previously issued financial
statements as of and for the years ended December 31, 2017 and 2016 in
our 2018 Annual Report on Form 10-K and will be reporting ineffective
internal control over financial reporting as of December 31, 2018, due
to the existence of a material weakness associated with such
restatement. Specifically, in connection with preparing our 2018
financial statements, MCBC identified an error in our 2016 income tax
accounting for inside and outside basis differences related to our
partnership in MillerCoors which resulted in an understatement of our
deferred tax liability and income tax expense, and overstatement of net
income by $399.1 million as of and for the year ended December 31, 2016.
This deferred tax liability required revaluation in 2017 due to the
impacts of the Tax Cuts and Jobs Act which, along with other
insignificant errors in the 2017 calculations related to the previously
held equity interest in MillerCoors, resulted in an overstatement of our
income tax expense and understatement of net income of $151.4 million
for the year ended December 31, 2017, and a net cumulative
understatement of our deferred tax liability of $247.7 million as of
December 31, 2017. The correction of these errors for the consolidated
statements of operations for the fourth quarter and full year 2017, and
for the balance sheet as of December 31, 2017, are reflected in the
tables below. There was no impact to underlying results. These errors
also do not have any impact on the previously disclosed cash tax
benefits resulting from the Acquisition. See the Company's 2018 Form
10-K filing for additional details.

Three Months Ended

Twelve Months Ended

December 31, 2017

December 31, 2017

As Reported

As Restated

As Reported

As Restated

Consolidated Statements of Operations:

(In millions)

Income tax benefit (expense)

$

391.7

$

519.8

$

53.2

$

204.6

Net income (loss) attributable to Molson Coors Brewing Company

$

588.8

$

716.9

$

1,414.2

$

1,565.6

Basic net income (loss) attributable to Molson Coors Brewing Company
per share

$

2.73

$

3.33

$

6.57

$

7.27

Diluted net income (loss) attributable to Molson Coors Brewing
Company per share

$

2.72

$

3.31

$

6.53

$

7.23

As of

December 31, 2017

As Reported

As Restated

Consolidated Balance Sheets

(In millions)

Deferred tax liabilities

$

1,648.6

$

1,896.3

Retained earnings

$

7,206.1

$

6,958.4

2019 Outlook

The company expects to achieve the following targets for full year 2019
performance:

Underlying effective tax rate in the range of 18 to 22 percent
for 2019, which remains subject to additional definitive guidance from
the U.S. government regarding the implementation of the tax reform
legislation from 2017. The company's preliminary view of its long-term
effective tax rate (after 2019) is in the range of 20 to 24 percent.

Deleverage & Dividend: We remain committed to maintaining
our investment grade rating as demonstrated by our achievement of
approximately 4x leverage on a rating agency basis at the end of 2018.
We further plan to achieve about 3.75x rating agency leverage around
the middle of 2019. Additionally, upon achieving about 3.75x leverage,
our board's intention is to reinstitute a dividend payout-ratio target
in the range of 20-25% of annual trailing underlying EBITDA for the
second half of 2019 and ongoing thereafter.

Notes

Unless otherwise indicated in this release, all $ amounts are in U.S.
Dollars, and all comparative results are for the Company’s fourth
quarter or full year ended December 31, 2018, compared to the fourth
quarter or full year ended December 31, 2017. Prior year results have
been adjusted to reflect the retrospective adoption of new pension
accounting guidance, as described in the appendix. Prior year results
have also been adjusted for the correction of the deferred tax
accounting error previously discussed above. Effective in the first
quarter of 2018, we revised our net sales revenue (NSR) per HL
performance discussions to be on a brand volume basis, such that all
per-hectoliter calculations now include owned and actively managed brand
volume, along with royalty volume, in the denominator, as well as the
financial impact of these sales in the numerator, unless otherwise
indicated. Some numbers may not sum due to rounding.

As used in this release, the term “Acquisition” refers to the Company’s
acquisition from Anheuser-Busch InBev SA/NV on October 11, 2016, of
SABMiller plc’s 58 percent economic interest and 50 percent voting
interest in MillerCoors LLC and all trademarks, contracts and other
assets primarily related to the Miller International business outside of
the U.S. and Puerto Rico.

2018 Fourth Quarter Conference Call

Molson Coors Brewing Company will conduct an earnings conference call
with financial analysts and investors at 11:00 a.m. Eastern Time today
to discuss the Company’s 2018 fourth quarter and full year results. The
live webcast will be accessible via the Company’s website, www.molsoncoors.com.
An online replay of the webcast will be available until 11:59 p.m.
Eastern Time on April 30, 2019. The Company will post this release and
related financial statements on its website today.

Overview of Molson Coors

Molson Coors has defined brewing greatness for more than two centuries.
As one of the largest global brewers, Molson Coors works to deliver
extraordinary brands that delight the world’s beer drinkers. From Coors
Light, Coors Banquet, Miller Lite, Molson Canadian, Carling, Staropramen
and Sharp’s Doom Bar to Leinenkugel’s Summer Shandy, Blue Moon Belgian
White, Hop Valley, Creemore Springs and Crispin Cider, Molson Coors
offers a beer for every beer lover.

Molson Coors operates through Molson Coors Canada, MillerCoors in the
U.S., Molson Coors Europe and Molson Coors International. The company is
not only committed to brewing extraordinary beers, but also running a
business focused on respect for its employees, communities and drinkers,
which means corporate responsibility and accountability right from the
start. It has been listed on the Dow Jones Sustainability North America
Index for the past eight years. To learn more about Molson Coors Brewing
Company, visit molsoncoors.com,
ourbeerprint.com
or on Twitter through @MolsonCoors.

About Molson Coors Canada Inc.

Molson Coors Canada Inc. (MCCI) is a subsidiary of Molson Coors Brewing
Company. MCCI Class A and Class B exchangeable shares offer
substantially the same economic and voting rights as the respective
classes of common shares of MCBC, as described in MCBC’s annual proxy
statement and Form 10-K filings with the U.S. Securities and Exchange
Commission. The trustee holder of the special Class A voting stock and
the special Class B voting stock has the right to cast a number of votes
equal to the number of then outstanding Class A exchangeable shares and
Class B exchangeable shares, respectively.

Forward-Looking Statements

This press release includes “forward-looking statements” within the
meaning of the U.S. federal securities laws.Generally, the words
“believe,” “expect,” “intend,” “anticipate,” “project,” “will,”
“outlook,” and similar expressions identify forward-looking statements,
which generally are not historic in nature.Although the Company
believes that the assumptions upon which its forward-looking statements
are based are reasonable, it can give no assurance that these
assumptions will prove to be correct. Important factors that could cause
actual results to differ materially from the Company’s historical
experience, and present projections and expectations are disclosed in
the Company’s filings with the Securities and Exchange Commission
(“SEC”).These factors include, among others, the impact of
increased competition resulting from further consolidation of brewers,
competitive pricing and product pressures; health of the beer industry
and our brands in our markets; economic conditions in our markets;
additional impairment charges; our ability to maintain
manufacturer/distribution agreements; changes in our supply chain
system; availability or increase in the cost of packaging materials;
success of our joint ventures; risks relating to operations in
developing and emerging markets; changes in legal and regulatory
requirements, including the regulation of distribution systems;
fluctuations in foreign currency exchange rates; increase in the cost of
commodities used in the business; the impact of climate change and the
availability and quality of water; loss or closure of a major brewery or
other key facility; our ability to implement our strategic initiatives,
including executing and realizing cost savings; our ability to
successfully integrate newly acquired businesses; our ability to achieve
expected tax benefits, accretion and cost savings relating to the
Acquisition; pension plan and other post-retirement benefit costs;
failure to comply with debt covenants or deterioration in our credit
rating; our ability to maintain good labor relations; our ability to
maintain brand image, reputation and product quality; and other risks
discussed in our filings with the SEC, including our most recent Annual
Report on Form 10-K and our Quarterly Reports on Form 10-Q.All
forward-looking statements in this press release are expressly qualified
by such cautionary statements and by reference to the underlying
assumptions. You should not place undue reliance on forward-looking
statements, which speak only as of the date they are made.We do
not undertake to update forward-looking statements, whether as a result
of new information, future events or otherwise.

APPENDIX

Consolidated Financial Performance

Molson Coors Brewing Company

Three Months Ended December 31, 2018

% Change

(In millions, except per share data) (Unaudited)

U.S. GAAP

Non-GAAP

Adjustments(1)

Non-GAAP

Underlying(1)

U.S. GAAP

Non-GAAP

Underlying

Net sales

$

2,418.7

$

—

$

2,418.7

(6.2

)%

(6.2

)%

Net Sales per HL change

0.3

%

0.3

%

Cost of goods sold

$

(1,596.0

)

$

104.4

$

(1,491.6

)

5.0

%

(4.0

)%

Cost of goods sold per HL change

12.3

%

2.6

%

Gross profit

$

822.7

$

104.4

$

927.1

(22.4

)%

(9.6

)%

Marketing, general and administrative expenses

$

(663.0

)

$

12.7

$

(650.3

)

(15.1

)%

(14.0

)%

Special items, net

$

(18.0

)

$

18.0

$

—

97.8

%

—

%

Operating income (loss)

$

141.7

$

135.1

$

276.8

(47.6

)%

2.9

%

Interest income (expense), net

$

(70.9

)

$

—

$

(70.9

)

(16.5

)%

(16.5

)%

Other pension and postretirement benefits (costs), net

$

10.7

$

(1.2

)

$

9.5

(29.1

)%

(2.1

)%

Other income (expense), net

$

(12.2

)

$

7.8

$

(4.4

)

N/M

N/M

Income (loss) before income taxes

$

69.3

$

141.7

$

211.0

(65.6

)%

8.4

%

Income tax benefit (expense)

$

6.4

$

(35.4

)

$

(29.0

)

(98.8

)%

(48.1

)%

Net income (loss)(2)

$

76.0

$

106.3

$

182.3

(89.4

)%

35.7

%

Per diluted share

$

0.35

$

0.49

$

0.84

(89.4

)%

35.5

%

Underlying EBITDA(3)

$

487.7

1.4

%

Molson Coors Brewing Company

Twelve Months Ended December 31, 2018

% Change

(In millions, except per share data) (Unaudited)

U.S. GAAP

Non-GAAP

Adjustments(1)

Non-GAAP

Underlying(1)

U.S. GAAP

Non-GAAP

Underlying

Net sales

$

10,769.6

$

—

$

10,769.6

(2.1

)%

(2.1

)%

Net Sales per HL change

0.9

%

0.9

%

Cost of goods sold

$

(6,584.8

)

$

171.1

$

(6,413.7

)

5.6

%

1.0

%

Cost of goods sold per HL change

8.8

%

4.1

%

Gross profit

$

4,184.8

$

171.1

$

4,355.9

(12.2

)%

(6.4

)%

Marketing, general and administrative expenses

$

(2,802.7

)

$

38.8

$

(2,763.9

)

(8.2

)%

(7.3

)%

Special items, net

$

249.7

$

(249.7

)

$

—

N/M

—

%

Operating income (loss)

$

1,631.8

$

(39.8

)

$

1,592.0

(2.7

)%

(4.8

)%

Interest income (expense), net

$

(298.2

)

$

—

$

(298.2

)

(13.1

)%

(13.1

)%

Other pension and postretirement benefits (costs), net

$

38.2

$

0.9

$

39.1

(19.4

)%

—

%

Other income (expense), net

$

(12.0

)

$

7.8

$

(4.2

)

N/M

(39.1

)%

Income (loss) before income taxes

$

1,359.8

$

(31.1

)

$

1,328.7

(1.7

)%

(2.4

)%

Income tax benefit (expense)

$

(225.2

)

$

5.8

$

(219.4

)

N/M

(40.5

)%

Net income (loss)(2)

$

1,116.5

$

(25.3

)

$

1,091.2

(28.7

)%

12.5

%

Per diluted share

$

5.15

$

(0.11

)

$

5.04

(28.8

)%

12.5

%

Underlying EBITDA(3)

$

2,453.7

(1.7

)%

N/M = Not meaningful

(1)

Refer to the table "Reconciliation to Nearest U.S. GAAP Measures"
for detailed descriptions and reconciliation of non-GAAP adjustments
and results.

The new revenue recognition accounting standard became effective for us
at the beginning of 2018. We have adopted the new standard using the
modified retrospective approach, and, therefore, prior period results
have not been restated. However, results under the old standard have
been disclosed throughout 2018 for comparability, as required by the
standard. The following table highlights the impact of this new guidance
on summarized components of our unaudited results of operations for the
three months ended December 31, 2018, when comparing our current period
results of operations under the new guidance, versus our results of
operations if historical guidance had continued to be applied.

Three Months Ended December 31, 2018

U.S.

Canada

Europe

International

Consolidated

(In millions)

Impact to Unaudited Results of Operations -
Favorable/(Unfavorable):

Net sales

$

8.7

$

(10.7

)

$

—

$

—

$

(2.0

)

Cost of goods sold

$

—

$

—

$

—

$

—

$

—

Gross profit

$

8.7

$

(10.7

)

$

—

$

—

$

(2.0

)

Marketing, general and administrative expenses

$

1.5

$

11.5

$

1.2

$

—

$

14.2

Operating income (loss)

$

10.2

$

0.8

$

1.2

$

—

$

12.2

Interest income (expense), net

$

—

$

—

$

(0.9

)

$

—

$

(0.9

)

Income (loss) before income taxes

$

10.2

$

0.8

$

0.3

$

—

$

11.3

These impacts are driven primarily by the reclassification of certain
cash payments to customers from marketing, general and administrative
expenses to a reduction of revenue, as well as a change in the timing of
recognition of certain promotional discounts and cash payments to
customers. For further discussion regarding the impacts of the adoption
of this guidance, refer to Part II—Item 8. Financial Statements and
Supplementary Data, Note 2, "New Accounting Pronouncements" of the Form
10-K.

Adoption of Pension and Other Postretirement Benefit Accounting
Pronouncement

During the first quarter of 2018, we adopted the FASB's guidance related
to classification of pension and other postretirement benefit costs.
Specifically, the new guidance requires us only to report the service
cost component in the same line item as other compensation costs arising
from services rendered by the pertinent employees during the period;
while the other components of net benefit cost are now presented in the
statements of operations separately from the service cost component and
outside of operating income. We have also determined that only service
cost will be reported within each operating segment, and all other
components will be reported within the Corporate segment. These changes
to the results of each quarter and full year 2017 were included in the
2018 first quarter Earnings Release. See our 2018 Form 10-K filing for
additional detail.

Worldwide Brand and Financial Volumes

Worldwide brand volume reflects only owned brands sold to unrelated
external customers within our geographic markets (net of returns and
allowances), royalty volume and our proportionate share of equity
investment worldwide brand volume calculated consistently with MCBC
owned volume. Contract brewing and wholesaler volume is included within
financial volume, but is removed from worldwide brand volume, as this is
non-owned volume for which we do not directly control performance. Our
worldwide brand volume definition also includes an adjustment from
Sales-to-Wholesaler (STW) volume to Sales-to-Retailer (STR) volume. We
believe the brand volume metric is important because, unlike financial
volume and STWs, it provides the closest indication of the performance
of our brands in relation to market and competitor sales trends.

Effective in the first quarter of 2018, we revised our net sales revenue
(NSR) per HL performance discussions to be on a brand volume basis, such
that all per-hectoliter calculations now include owned and actively
managed brand volume, along with royalty volume, in the denominator, as
well as the financial impact of these sales in the numerator, unless
otherwise indicated.

Use of Non-GAAP Measures

In addition to financial measures presented on the basis of accounting
principles generally accepted in the U.S. ("U.S. GAAP"), we also present
constant currency, "underlying pretax and net income," "underlying
income per diluted share," "underlying effective tax rate," and
"underlying free cash flow," which are non-GAAP measures and should be
viewed as supplements to (not substitutes for) our results of operations
presented under U.S. GAAP. We also present underlying earnings before
interest, taxes, depreciation, and amortization ("underlying EBITDA") as
a non-GAAP measure, as well as underlying EBITDA margin, which is
calculated by dividing underlying EBITDA by U.S. GAAP net sales. Our
management uses underlying income, underlying income per diluted share,
underlying EBITDA (and margin), and underlying effective tax rate as
measures of operating performance, as well as underlying free cash flow
in the measure of cash generated from core operations, to assist in
comparing performance from period to period on a consistent basis; as a
measure for planning and forecasting overall expectations and for
evaluating actual results against such expectations; in communications
with the board of directors, stockholders, analysts and investors
concerning our financial performance; as useful comparisons to the
performance of our competitors; and as metrics of certain management
incentive compensation calculations. We believe that underlying income,
underlying income per diluted share, underlying EBITDA (and margin), and
underlying effective tax rate performance are used by, and are useful
to, investors and other users of our financial statements in evaluating
our operating performance, as well as underlying free cash flow in
evaluating our generation of cash from core operations, because they
provide an additional tool to evaluate our performance without regard to
special and non-core items, which can vary substantially from company to
company depending upon accounting methods and book value of assets and
capital structure. In addition to the reasons discussed above, we
consider underlying free cash flow an important measure of our ability
to generate cash, grow our business and enhance shareholder value,
driven by core operations and after adjusting for non-core items. In
addition, constant-currency results exclude the impact of foreign
currency movements. For discussion and analysis of our liquidity, see
the consolidated statements of cash flows and the Liquidity and Capital
Resources section of our Management’s Discussion and Analysis of
Financial Condition and Results of Operations in our latest Form 10-K
and 10-Q filings with the SEC.

We have provided reconciliations of all historical non-GAAP measures to
their nearest U.S. GAAP measure and have consistently applied the
adjustments within our reconciliations in arriving at each non-GAAP
measure. These adjustments consist of special items from our U.S. GAAP
financial statements as well as other non-core items, such as
integration related costs, unrealized mark-to-market gains and losses,
and gains and losses on sales of non-operating assets, included in our
U.S. GAAP results that warrant adjustment to arrive at non-GAAP results.
We consider these items to be necessary adjustments for purposes of
evaluating our ongoing business performance and are often considered
non-recurring. Such adjustments are subjective and involve significant
management judgment.

Our guidance for underlying Corporate MG&A, underlying depreciation and
amortization, underlying free cash flow and underlying effective tax
rate are also non-GAAP financial measures that exclude or otherwise have
been adjusted for special items from our U.S. GAAP financial statements
as well as other non-core items, such as integration related costs,
unrealized mark-to-market gains and losses, and gains and losses on
sales of non-operating assets, included in our U.S. GAAP results that
warrant adjustment to arrive at non-GAAP results. We consider these
items to be necessary adjustments for purposes of evaluating our ongoing
business performance and are often considered non-recurring. Such
adjustments are subjective and involve significant management judgment.
We are unable to reconcile the above described guidance measures to
their nearest U.S. GAAP measures without unreasonable efforts because we
are unable to predict with a reasonable degree of certainty the actual
impact of the special and other non-core items. By their very nature,
special and other non-core items are difficult to anticipate with
precision because they are generally associated with unexpected and
unplanned events that impact our company and its financial results.
Therefore, we are unable to provide a reconciliation of these measures.

Constant currency is a non-GAAP measure utilized by Molson Coors
management to measure performance, excluding the impact of foreign
currency movements. As we operate in various foreign countries where the
local currency may strengthen or weaken significantly versus the U.S.
dollar or other currencies used in operations, we utilize a constant
currency measure as an additional metric to evaluate the underlying
performance of each business without consideration of foreign currency
movements. This information is non-GAAP and should be viewed as a
supplement to (not a substitute for) our reported results of operations
under U.S. GAAP. We calculate the impact of foreign exchange on net
sales, pretax income, non-GAAP underlying EBITDA and non-GAAP underlying
pretax income using the following steps:

Multiply our current period local currency operating results (that
also include the impact of the comparable prior-period currency
hedging activities) by the weighted average foreign exchange rates
used to translate the financial statements in the comparable prior
year period. The result is the current-period operating results in
U.S. dollars, as if foreign exchange rates had not changed from the
prior-year period.

Subtract the result in step 1 from the unadjusted current-period
reported operating result in U.S. dollars (U.S. GAAP measure). This
difference reflects the impact of foreign currency translational
gains/losses included in the current-period results.

Determine the amount of actual non-operating foreign currency
gains/losses realized as a result of hedging activities and activities
transacted in a currency other than the functional currency of each
legal entity.

Add the results of steps 2 and 3 above. This sum equals the total
impact of foreign currency translational gains/losses and realized
gains/losses from foreign currency transactions. This is the value
shown in the “Foreign Exchange $ Impact” column within the table above.

Reconciliations to Nearest U.S. GAAP Measures

Underlying EBITDA

($ in millions) (Unaudited)

Three Months Ended

December 31, 2018

% change

December 31, 2017

As Restated

U.S. GAAP: Net income (loss) attributable to MCBC

$

76.0

(89.4

)%

$

716.9

Add: Net income (loss) attributable to noncontrolling
interests

(0.3

)

N/M

4.5

U.S. GAAP: Net income (loss)

75.7

(89.5

)%

721.4

Add: Interest expense (income), net

70.9

(16.5

)%

84.9

Add: Income tax expense (benefit)

(6.4

)

(98.8

)%

(519.8

)

Add: Depreciation and amortization

213.3

2.3

%

208.5

Adjustments included in underlying income(1)

141.7

N/M

(6.9

)

Adjustments to arrive at underlying EBITDA(2)

(7.5

)

5.6

%

(7.1

)

Non-GAAP: Underlying EBITDA

$

487.7

1.4

%

$

481.0

($ in millions) (Unaudited)

Twelve Months Ended

December 31, 2018

% change

December 31, 2017As Restated

U.S. GAAP: Net income (loss) attributable to MCBC

$

1,116.5

(28.7

)%

$

1,565.6

Add: Net income (loss) attributable to noncontrolling
interests

18.1

(18.5

)%

22.2

U.S. GAAP: Net income (loss)

1,134.6

(28.5

)%

1,587.8

Add: Interest expense (income), net

298.2

(13.1

)%

343.3

Add: Income tax expense (benefit)

225.2

N/M

(204.6

)

Add: Depreciation and amortization

857.5

5.5

%

812.8

Adjustments included in underlying income(1)

(31.1

)

40.1

%

(22.2

)

Adjustments to arrive at underlying EBITDA(2)

(30.7

)

49.8

%

(20.5

)

Non-GAAP: Underlying EBITDA

$

2,453.7

(1.7

)%

$

2,496.6

N/M = Not meaningful

(1)

Includes adjustments to non-GAAP underlying income within the table
above related to special and non-core items.

(2)

Represents adjustments to remove amounts related to interest,
depreciation and amortization included in the adjustments to
non-GAAP underlying income above, as these items are added back as
adjustments to net income attributable to MCBC.

Underlying Free Cash Flow

(In millions) (Unaudited)

Twelve Months Ended

December 31, 2018

December 31, 2017

U.S. GAAP:

Net Cash Provided by (Used In) Operating Activities

$

2,331.3

$

1,866.3

Less:

Additions to properties(1)

(651.7

)

(599.6

)

Add/Less:

Cash impact of special items(2)

(310.1

)

89.5

Add:

Non-core costs related to acquisition of businesses(3)

52.4

92.8

Non-GAAP:

Underlying Free Cash Flow

$

1,421.9

$

1,449.0

(1)

Included in net cash used in investing activities.

(2)

Included in net cash provided by (used in) operating activities. For
the twelve months ended December 31, 2018, primarily reflects the
settlement payment received relating to a purchase price adjustment
and for the twelve months ended December 31, 2017, primarily
reflects costs paid for brewery closures and restructuring
activities.

(3)

Included in net cash provided by operating activities and reflects
costs paid associated with the Acquisition.

Statements of Operations - Molson Coors Brewing Company and
Subsidiaries

Condensed Consolidated Statements of Operations

(In millions, except per share data) (Unaudited)

Three Months Ended

Twelve Months Ended

December 31,

2018

December 31,

2017

As Restated

December 31,

2018

December 31,

2017

As Restated

Financial volume in hectoliters

21.556

23.055

96.627

99.563

Sales

$

3,024.4

$

3,211.7

$

13,338.0

$

13,471.5

Excise taxes

(605.7

)

(632.1

)

(2,568.4

)

(2,468.7

)

Net sales

2,418.7

2,579.6

10,769.6

11,002.8

Cost of goods sold

(1,596.0

)

(1,519.8

)

(6,584.8

)

(6,236.7

)

Gross profit

822.7

1,059.8

4,184.8

4,766.1

Marketing, general and administrative expenses

(663.0

)

(780.5

)

(2,802.7

)

(3,052.0

)

Special items, net

(18.0

)

(9.1

)

249.7

(36.4

)

Operating income (loss)

141.7

270.2

1,631.8

1,677.7

Interest income (expense), net

(70.9

)

(84.9

)

(298.2

)

(343.3

)

Other pension and postretirement benefits (costs), net

10.7

15.1

38.2

47.4

Other income (expense), net

(12.2

)

1.2

(12.0

)

1.4

Income (loss) before income taxes

69.3

201.6

1,359.8

1,383.2

Income tax benefit (expense)

6.4

519.8

(225.2

)

204.6

Net income (loss)

75.7

721.4

1,134.6

1,587.8

Net (income) loss attributable to noncontrolling interests

0.3

(4.5

)

(18.1

)

(22.2

)

Net income (loss) attributable to MCBC

$

76.0

$

716.9

$

1,116.5

$

1,565.6

Basic net income (loss) attributable to MCBC per share:

$

0.35

$

3.33

$

5.17

$

7.27

Diluted net income (loss) attributable to MCBC per share:

$

0.35

$

3.31

$

5.15

$

7.23

Weighted average shares - basic

216.1

215.5

216.0

215.4

Weighted average shares - diluted

216.7

216.5

216.6

216.5

Dividends per share

$

0.41

$

0.41

$

1.64

$

1.64

Molson Coors Brewing Company and Subsidiaries

U.S. Results of Operations

(In millions) (Unaudited)

Three Months Ended

Twelve Months Ended

December 31, 2018

December 31, 2017

December 31, 2018

December 31, 2017

Financial volume in hectoliters(1)

14.010

15.606

64.272

67.731

Sales(1)

$

1,818.3

$

1,963.0

$

8,234.4

$

8,541.7

Excise taxes

(214.5

)

(238.3

)

(974.5

)

(1,036.0

)

Net sales(1)

1,603.8

1,724.7

7,259.9

7,505.7

Cost of goods sold(1)

(979.0

)

(1,038.7

)

(4,277.5

)

(4,324.2

)

Gross profit

624.8

686.0

2,982.4

3,181.5

Marketing, general and administrative expenses

(382.7

)

(460.0

)

(1,631.3

)

(1,782.7

)

Special items, net(2)

(3.3

)

(0.1

)

(37.8

)

(15.3

)

Operating income

238.8

225.9

1,313.3

1,383.5

Interest income (expense), net

0.8

(0.9

)

8.8

13.1

Other income (expense), net

(0.3

)

(1.0

)

(1.4

)

(2.4

)

Income (loss) before income taxes

$

239.3

$

224.0

$

1,320.7

$

1,394.2

Add/(less):

Special items, net(2)

3.3

0.1

37.8

15.3

Integration related costs(3)

0.3

0.7

2.9

7.5

Non-GAAP: Underlying pretax income (loss)

$

242.9

$

224.8

$

1,361.4

$

1,417.0

Add: Interest expense (income), net

(0.8

)

0.9

(8.8

)

(13.1

)

Add: Depreciation and amortization

129.0

122.2

514.0

485.7

Adjustments to arrive at underlying EBITDA(4)

(1.0

)

—

(5.2

)

—

Non-GAAP: Underlying EBITDA

$

370.1

$

347.9

$

1,861.4

$

1,889.6

(1)

Includes gross inter-segment sales, purchases, and volumes, which
are eliminated in the consolidated totals.

(2)

See Part II—Item 8. Financial Statements and Supplementary Data,
Note 7, "Special Items" of the Form 10-K for detailed discussion of
special items, on an actual basis. Special items for the three and
twelve months ended December 31, 2018, includes accelerated
depreciation in excess of normal depreciation of $1.0 million and
$5.2 million, respectively. These accelerated depreciation charges
are included in our adjustments to arrive at underlying EBITDA.

(3)

For the three and twelve months ended December 31, 2018, $0.3
million and $2.8 million, respectively, of integration costs were
incurred in cost of goods sold, and for the twelve months ended
December 31, 2018, $0.1 million of integration costs were incurred
in marketing, general & administrative expenses. For the three and
twelve months ended December 31, 2017, $0.6 million and $2.4
million, respectively, of integration costs were incurred in cost of
goods sold, and $0.1 million and $5.1 million, respectively, of
integration costs were incurred in marketing, general &
administrative expenses.

(4)

Represents adjustments to remove amounts related to interest,
depreciation and amortization included in the adjustments to
non-GAAP underlying income above, as these items are added back as
adjustments to net income attributable to MCBC.

Molson Coors Brewing Company and Subsidiaries

Canada Results of Operations

(In millions) (Unaudited)

Three Months Ended

Twelve Months Ended

December 31, 2018

December 31, 2017

December 31, 2018

December 31, 2017

Financial volume in hectoliters(1)

1.969

2.087

8.554

8.805

Sales(1)

$

431.7

$

466.0

$

1,850.6

$

1,906.2

Excise taxes

(109.7

)

(113.1

)

(458.5

)

(448.2

)

Net sales(1)

322.0

352.9

1,392.1

1,458.0

Cost of goods sold(1)

(205.1

)

(210.4

)

(847.0

)

(847.0

)

Gross profit

116.9

142.5

545.1

611.0

Marketing, general and administrative expenses

(79.4

)

(93.7

)

(341.9

)

(397.5

)

Special items, net(2)

(6.6

)

(6.3

)

(23.8

)

(14.4

)

Operating income (loss)

30.9

42.5

179.4

199.1

Other income (expense), net

(21.8

)

(0.1

)

(22.4

)

11.1

Income (loss) before income taxes

$

9.1

$

42.4

$

157.0

$

210.2

Add/(less):

Special items, net(2)

6.6

6.3

23.8

14.4

Integration related costs(3)

0.1

0.8

0.5

4.1

Other non-core items(4)

19.5

(0.2

)

19.5

(8.3

)

Non-GAAP: Underlying pretax income (loss)

$

35.3

$

49.3

$

200.8

$

220.4

Add: Depreciation and amortization

35.9

35.9

141.9

131.2

Adjustments to arrive at underlying EBITDA(5)

(6.5

)

(6.0

)

(24.5

)

(14.4

)

Non-GAAP: Underlying EBITDA

$

64.7

$

79.2

$

318.2

$

337.2

(1)

Includes gross inter-segment sales, purchases, and volumes, which
are eliminated in the consolidated totals.

(2)

See Part II—Item 8 Financial Statements and Supplementary Data, Note
7, "Special Items" of the Form 10-K for detailed discussion of
special items. Special items for the three and twelve months ended
December 31, 2018, includes accelerated depreciation expense of $1.5
million and $4.5 million, respectively, and for the three and twelve
months ended December 31, 2017, includes accelerated depreciation
expense of $0.9 million and $4.1 million, respectively, related to
the planned closure of the Vancouver brewery. Also incurred in the
three and twelve months ended December 31, 2018, are accelerated
depreciation charges in excess of normal deprecation of $5.0 million
and $20.0 million, respectively, and for the three and twelve months
ended December 31, 2017, accelerated depreciation charges in excess
of normal depreciation incurred of $5.1 million and $10.3 million,
respectively, related to the planned closure of our existing
Montreal brewery. These accelerated depreciation charges are
included in our adjustments to arrive at underlying EBITDA.

(3)

For the three and twelve months ended December 31, 2018, $0.1
million and $0.5 million, respectively, and for the three and twelve
months ended December 31, 2017, $0.8 million and $4.1 million,
respectively, of integration related costs were incurred in cost of
goods sold.

(4)

For the three and twelve months ended December 31, 2018, charges of
$23.8 million were recorded related to the unrealized mark-to-market
changes of the HEXO warrants offset by a gain of $4.3 million
recorded for the release of our guarantee of the Montreal Canadiens'
obligations under a ground lease. For the twelve months ended
December 31, 2017, a gain of $8.3 million was recorded in other
income (expense), net resulting from a purchase price adjustment
related to the historical sale of Molson Inc.’s ownership interest
in the Montreal Canadiens. See Part II—Item 8 Financial Statements
and Supplementary Data, Note 5, "Other Income and Expense" of the
Form 10-K for detailed discussion.

(5)

Represents adjustments to remove amounts related to interest,
depreciation and amortization included in the adjustments to
non-GAAP underlying income above, as these items are added back as
adjustments to net income attributable to MCBC.

Molson Coors Brewing Company and Subsidiaries

Europe Results of Operations

(In millions) (Unaudited)

Three Months Ended

Twelve Months Ended

December 31, 2018

December 31, 2017

December 31, 2018

December 31, 2017

Financial volume in hectoliters(1)(2)

5.561

5.401

23.772

23.290

Sales(2)

$

735.6

$

746.5

$

3,088.6

$

2,888.3

Excise taxes

(271.3

)

(273.3

)

(1,086.0

)

(947.6

)

Net sales(2)

464.3

473.2

2,002.6

1,940.7

Cost of goods sold

(301.2

)

(301.7

)

(1,269.4

)

(1,174.4

)

Gross profit

163.1

171.5

733.2

766.3

Marketing, general and administrative expenses

(127.2

)

(126.6

)

(534.6

)

(530.3

)

Special items, net(3)

(0.6

)

(2.6

)

(6.0

)

(5.0

)

Operating income (loss)

35.3

42.3

192.6

231.0

Interest income, net

(1.5

)

0.8

(5.1

)

3.6

Other income (expense), net

(0.3

)

—

(1.1

)

0.3

Income (loss) before income taxes

$

33.5

$

43.1

$

186.4

$

234.9

Add/(less):

Special items, net(3)

0.6

2.6

6.0

5.0

Integration related costs(4)

0.1

0.2

0.6

0.6

Non-GAAP: Underlying pretax income (loss)

$

34.2

$

45.9

$

193.0

$

240.5

Add: Interest expense (income), net

1.5

(0.8

)

5.1

(3.6

)

Add: Depreciation and amortization

45.0

46.9

188.0

182.3

Adjustments to arrive at underlying EBITDA(5)

—

(1.1

)

(1.0

)

(6.1

)

Non-GAAP: Underlying EBITDA

$

80.7

$

90.9

$

385.1

$

413.1

(1)

Excludes royalty volume of 0.469 million hectoliters and 1.787
million hectoliters for the three and twelve months ended December
31, 2018, respectively, and excludes royalty volume of 0.417 million
hectoliters and 1.694 million hectoliters for the three and twelve
months ended December 31, 2017, respectively.

(2)

Includes gross inter-segment sales and volumes, which are eliminated
in the consolidated totals.

(3)

See Part II—Item 8 Financial Statements and Supplementary Data, Note
7, "Special Items" of the Form 10-K for detailed discussion of
special items. Special items for the twelve months ended December
31, 2018, includes accelerated depreciation in excess of normal
depreciation of $1.0 million. For the three and twelve months ended
December 31, 2017, includes accelerated depreciation in excess of
normal depreciation of $1.1 million and $6.1 million, respectively.
Costs in both years relate to the closure of our Burton South
brewery in the U.K., which was completed in the first quarter of
2018. These accelerated depreciation charges are included in our
adjustments to arrive at underlying EBITDA.

(4)

For the three and twelve months ended December 31, 2018, $0.1
million and $0.6 million, respectively, and for the three and twelve
months ended December 31, 2017, $0.2 million and $0.6 million,
respectively, of integration related costs were incurred in cost of
goods sold.

(5)

Represents adjustments to remove amounts related to interest,
depreciation and amortization included in the adjustments to
non-GAAP underlying income above, as these items are added back as
adjustments to net income attributable to MCBC.

Molson Coors Brewing Company and Subsidiaries

International Results of Operations

(In millions) (Unaudited)

Three Months Ended

Twelve Months Ended

December 31, 2018

December 31, 2017

December 31, 2018

December 31, 2017

Financial volume in hectoliters(1)

0.480

0.620

2.214

2.394

Sales

$

67.9

$

78.8

$

299.5

$

300.9

Excise taxes

(10.2

)

(7.4

)

(49.4

)

(36.9

)

Net sales

57.7

71.4

250.1

264.0

Cost of goods sold(2)

(36.5

)

(49.8

)

(160.4

)

(180.5

)

Gross profit

21.2

21.6

89.7

83.5

Marketing, general and administrative expenses

(21.8

)

(29.0

)

(81.6

)

(101.7

)

Special items, net(3)

(6.1

)

(0.1

)

(9.3

)

(1.6

)

Operating income (loss)

(6.7

)

(7.5

)

(1.2

)

(19.8

)

Other income (expense), net

—

—

(1.5

)

0.1

Income (loss) before income taxes

$

(6.7

)

$

(7.5

)

$

(2.7

)

$

(19.7

)

Add/(less):

Special items, net(3)

6.1

0.1

9.3

1.6

Integration related costs(4)

0.9

5.4

2.8

12.0

Non-GAAP: Underlying pretax income (loss)

$

0.3

$

(2.0

)

$

9.4

$

(6.1

)

Add: Depreciation and amortization

2.5

2.4

9.9

9.6

Non-GAAP: Underlying EBITDA

$

2.8

$

0.4

$

19.3

$

3.5

(1)

Excludes royalty volume of 0.641 million hectoliters and 2.267
million hectoliters for the three and twelve months ended December
31, 2018, respectively, and excludes royalty volume of 0.490 million
hectoliters and 1.991 million hectoliters for the three and twelve
months ended December 31, 2017, respectively.

(2)

Includes gross inter-segment purchases, which are eliminated in the
consolidated totals.

(3)

See Part II—Item 8 Financial Statements and Supplementary Data, Note
7, "Special Items" of the Form 10-K for detailed discussion of
special items.

(4)

For the three and twelve months ended December 31, 2018, $0.5
million and $1.0 million, respectively, of integration costs were
incurred in cost of goods sold, and $0.4 million and $1.8 million,
respectively, of integration costs were incurred in marketing,
general & administrative expenses. For the three and twelve months
ended December 31, 2017, $2.2 million and $3.6 million,
respectively, of integration costs were incurred in cost of goods
sold, and $3.2 million and $8.4 million, respectively, of
integration costs were incurred in marketing, general &
administrative expenses.

Molson Coors Brewing Company and Subsidiaries

Corporate Results of Operations

(In millions) (Unaudited)

Three Months Ended

Twelve Months Ended

December 31, 2018

December 31, 2017

December 31, 2018

December 31, 2017

Financial volume in hectoliters

—

—

—

—

Sales

$

0.1

$

—

$

0.8

$

0.9

Excise taxes

—

—

—

—

Net sales

0.1

—

0.8

0.9

Cost of goods sold

(103.4

)

38.2

(166.4

)

122.9

Gross profit

(103.3

)

38.2

(165.6

)

123.8

Marketing, general and administrative expenses

(51.9

)

(71.2

)

(213.3

)

(239.8

)

Special items, net(1)

(1.4

)

—

326.6

(0.1

)

Operating income (loss)

(156.6

)

(33.0

)

(52.3

)

(116.1

)

Interest expense, net

(70.2

)

(84.8

)

(301.9

)

(360.0

)

Other pension and postretirement benefits (costs), net

10.7

15.1

38.2

47.4

Other income (expense), net

10.2

2.3

14.4

(7.7

)

Income (loss) before income taxes

$

(205.9

)

$

(100.4

)

$

(301.6

)

$

(436.4

)

Add/(less):

Special items, net(1)

1.4

—

(326.6

)

0.1

Integration related costs(2)

12.3

20.8

36.9

57.1

Unrealized mark-to-market (gains) and losses(3)

103.4

(38.3

)

166.2

(123.3

)

Other non-core items(4)

(11.7

)

—

(11.7

)

—

Non-core other pension and postretirement benefits (costs), net(5)

(1.2

)

(5.4

)

0.9

(8.3

)

Non-GAAP: Underlying pretax income (loss)

$

(101.7

)

$

(123.3

)

$

(435.9

)

$

(510.8

)

Add: Interest expense (income), net

70.2

84.8

301.9

360.0

Add: Depreciation and amortization

0.9

1.1

3.7

4.0

Non-GAAP: Underlying EBITDA

$

(30.6

)

$

(37.4

)

$

(130.3

)

$

(146.8

)

(1)

See Part II—Item 8 Financial Statements and Supplementary Data, Note
7, "Special Items" of the Form 10-K for detailed discussion of
special items.

(2)

In connection with the acquisition, for the three and twelve months
ended December 31, 2018, we have recorded $12.3 million and $36.9
million, respectively, of integration costs within marketing,
general & administrative expenses, and for the three and twelve
months ended December 31, 2017, we have recorded $20.8 million and
$57.1 million, respectively, of integration costs within marketing,
general & administrative expenses.

(3)

The unrealized changes in fair value on our commodity swaps, which
are economic hedges, are recorded as cost of goods sold within our
Corporate business activities. As the exposure we are managing is
realized, we reclassify the gain or loss to the segment in which the
underlying exposure resides, allowing our segments to realize the
economic effects of the derivative without the resulting unrealized
mark-to-market volatility. The amounts included for the three and
twelve months ended December 31, 2018, and December 31, 2017,
include the unrealized mark-to-market on these commodity swaps.

(4)

A gain of $11.7 million was recognized in other income (expense)
during the three and twelve months ended December 31, 2018 for the
sale of a non-operating asset.

(5)

For the three and twelve months ended December 31, 2018, activity
relates to special termination benefit charges recognized in the
second half of 2018 for the U.S. segment restructuring program. For
the three and twelve months ended December 31, 2017, includes the
retrospective impact of the FASB's new pension and OPEB accounting
standard and moving the non-service component of net periodic
pension and other postretirement benefits to the Corporate segment.
See Part II—Item 8 Financial Statements and Supplementary Data, Note
2, "New Accounting Pronouncements" of the Form 10-K for detailed
discussion.

Balance Sheet

Consolidated Balance Sheets

(In millions, except par value) (Unaudited)

As of

December 31, 2018

December 31, 2017As Restated

Assets

Current assets:

Cash and cash equivalents

$

1,057.9

$

418.6

Accounts and other receivables:

Trade, less allowance for doubtful accounts of $14.5 and $17.2,
respectively

736.0

728.3

Affiliate receivables

8.4

5.5

Other receivables, less allowance for doubtful accounts of $0.2 and
$0.5, respectively

126.6

168.2

Inventories, less allowance for obsolete inventories of $16.2 and
$8.1, respectively

591.8

591.5

Other current assets, net

245.6

277.6

Total current assets

2,766.3

2,189.7

Properties, less accumulated depreciation of $2,558.8 and $2,096.6,
respectively

4,608.3

4,673.7

Goodwill

8,260.8

8,405.5

Other intangibles, less accumulated amortization of $810.3 and
$662.3, respectively

13,776.4

14,296.5

Other assets

698.0

681.5

Total assets

$

30,109.8

$

30,246.9

Liabilities and equity

Current liabilities:

Accounts payable and other current liabilities (includes affiliate
payables of $0.1 and $0.4, respectively)